In what clearly seems to be a threat perception mainly the cheaper imports from the neighbouring China, the Survey called for greater flexibility in labour laws if the domestic industry is to compete with the Chinese industry and generate as many new jobs as the latter has.

The Survey also suggested that inclusion of modern bankruptcy provisions in the Companies Act, repealing of SICA and dissolution of BIFR will facilitate industrial restructuring.

the delays currently inherent in the BIFR process that prevent quick reorganisation of sick companies, or closure when required, should be eliminated, as this would benefit shareholders, lenders, and labour to move to more productive pursuits, thereby promoting industrial growth.

According to the Survey, there should be modern contract labour act to encourage out-sourcing of services so that new employment is generated. Labour laws and procedures have reduced the incentive for organised labour to work efficiently and made it unprofitable for the organised industry to generate new jobs.

To be able to compete, the industry must be provided with the right environment as also it must apply competitive pressure. Also, the Survey said it is essential for the industry to become capable of revamp on a continuous basis. Measures to promote such restructuring include factor market reforms, an end to remaining investment controls and provisions for progressive improvement in infrastructure services.

These reforms will also help the industry in meeting the challenges of imports resulting from the removal of the remaining import curbs.